Grubhub to Pay $25 Million in California Driver Class Action

Grubhub Inc. agreed to pay $24.75 million to resolve a class action representing 60,000 California Grubhub drivers who allege the food delivery service misclassified them as independent contractors and failed to pay them minimum wage.

The motion for preliminary approval of the settlement said counsel for the class will request attorneys’ fees of a third of the total settlement amount, about $8 million.

The agreement, which must be approved by Judge Jacqueline Scott Corley of the US District Court for the Northern District of California, would cap off a decade of highly contested litigation, including a bench trial and an ...